YTL Power

[winston]

vested

YTL Power's AI-DC prospects remain intact

Expectations of improved earnings from Wessex Water and growth prospects from the artificial intelligence-data centre (AI-DC) venture.

Earnings moderation for electricity generator YTL Power Seraya during the quarter was largely anticipated due to weaker pool prices and lower retail margins.

"We reckon such earnings normalisation will happen gradually in FY25 and FY26 as retail contracts still accounted for more than 70% of the output".

Wessex water utility to recover more meaningfully in FY25, backed by annual tariff adjustments.

YTL Power is still in discussions to lock in off-takers for the first 100MW Phase 1 AI-DC.

YTL Power is a potential beneficiary of the strong RE growth trajectory under NETR, particularly for RE exports given its presence in the Singapore power sector".

Source: The Star

https://www.thestar.com.my/business/bus ... ain-intact

[winston]

Time to take a breather

Power Seraya net profit started to normalise in 3QFY6/24 but losses at Wessex are narrowing. Telco segment suffered from lower project revenues.

We lift our SOP-based TP to RM5.50 and downgrade the stock to a Hold. Investors have, in our view, baked in sizeable value for its DCs.

While DC construction works are seeing good progress, take-up rate needs to gather pace and details forthcoming to justify further re-rating, in our view.

TP: 5.50

At current prices, the market has baked in ~RM12.5bn in value for its DC business, in our view, but now takeu p rate needs to pick up and details revealed to justify further re-rating.

Downside risks: execution setbacks and market risks for DC projects, heavy capex leading to increased gearing.

Upside risks: higher-than-expected off-takers and rates for the DC facilities.

Source: CIMB

https://rfs.cgsi.com/api/download?file= ... 782B3F1AEF

[winston]

not vested

MULTIPLE PROPOSALS YTL POWER INTERNATIONAL BERHAD ("YTLPI" OR "COMPANY")
(I) ACQUISITION; AND
(II) UNCONDITIONAL MANDATORY TAKE-OVER OFFER ("MTO") (COLLECTIVELY REFERRED TO AS "TRANSACTIONS")

https://disclosure.bursamalaysia.com/Fi ... TTACHMENTS

[winston]

not vested

YTL Power’s Ranhill acquisition a positive

Strengthen the company’s position in the lucrative Malaysian utilities space.

Strengthening its footprint in Johor, given its ambitious data centre development.

Ranhill is estimated to generate a net profit of RM47mil-RM55mil in financial year 2024 (FY24) to FY26, which at a 53.19% stake is less than 1% of YTL Power’s FY25 estimated earnings.

The deal also gives YTL Power access to the Sabah electricity market whereby Ranhill controls the largest independent power producer share, solidified further by a new 100-megawatt (MW) combined cycle gas turbine due for commercial operation date in 2026.

Source: The Star

https://www.thestar.com.my/business/bus ... a-positive

[winston]

not vested

YTL Power poised to gain from UK subsidiary

PETALING JAYA: The prospects of YTL Power Intelligence Bhd’s UK unit, Wessex Water Services Ltd, remain positive, contributing to the earnings growth of the Malaysian conglomerate.

Having recently visited Wessex Water, the brokerage noted that the company had submitted its five-year business proposal (2025-2030) to the UK water services regulation authority, including a higher return and capex allocation of £3.5bil over the next years, compared to £1.4bil previously.

“We understand that the significant spike is mainly driven by legal or regulatory requirements on river health led measures and could result in a 30% increase in the average bill,” RHB Research said, adding the outcome of the business proposal would likely be known by the end of this year.

Wessex Water is one of 10 regional water and sewerage businesses in England and Wales, consistently ranked as the best water and sewerage company, according to industry regulators.

The unit supplies water to 1.4 million people and around 44,000 businesses with more than 282 million litres of water per day.

It also offers wastewater treatment to 2.9 million people and around 57,000 businesses with about 888 million litres of sewage per day.

Besides the positive contribution from Wessex Water, RHB Research remained optimistic about the prospects of other business segments under YTL Power, in particular, the group’s artificial intelligence-data centre (AI-DC) development.

As such, the brokerage reiterated “buy” on YTL Power, with an unchanged sum-of-parts-based target price of RM6.68.

Overall, RHB Research said it was positive over the conglomerate’s long-term earnings potential from its AI-DC development, with the near-term catalyst being the conclusion of the offtaker for the first 20 megawatt (MW) of the 100MW AI-DC project.

Source: The Star

https://www.thestar.com.my/business/bus ... subsidiary

[winston]

not vested

PR24 DD outcome: A mixed bag

While Ofwat has raised the allowed WACC, WW appears to have received notable cuts to its totex, bill revisions and a weak rating on its business plan.

However, it is worth noting that these DD outcomes are subject to further negotiations with Ofwat with the final determination expected in December.

Maintain Hold on YTLP with an unchanged SOP-based TP of RM5.50.

Source: CIMB

https://rfs.cgsi.com/api/download?file= ... 3813FCEA62

[winston]

vested

YTL Power's FY2024 net profit up 71%, pays four sen dividend

By Kang Siew Li

Net profit fall 5.6% to RM1.07 billion in its fourth financial quarter ended June 30, 2024 (4QFY2024) from RM1.14 billion a year earlier, on lower contribution from its power generation and investment holding activities business segments.

Lower earnings per share of 13.16 sen for 4QFY2024.

Declared a second interim dividend of four sen per share for the financial year ended June 30, 2024 (FY2024), payable on Nov 29. This brings its total dividends declared for FY2024 to seven sen per share.

Net profit of RM3.46 billion, a 70.8% increase from RM2.03 billion in the previous year, on better performance in the power generation segment.

Revenue grew 2% to RM22.32 billion in FY2024 from RM21.89 billion in FY2023.

4Q Rev: -10%, RM 6.3b

Developing a large portion of the Kulai Young Estate into a large-scale solar power facility with a generation capacity of up to 500 megawatts (MW) to co-power a 500MW green data centre park.

Extend its 5G services to the rest of the country in tandem with the rollout of Digital National Bhd’s 5G network.

Source: theedgemalaysia.com

https://theedgemalaysia.com/node/723717

[winston]

Commendable delivery

Upgrade to BUY YTLP’s 4QFY24 results were in line as Wessex’s return to profitability offset further tapering at PowerSeraya.

This should alleviate investors’ concerns on earnings delivery.

With share price having corrected by >30% from the peak, we believe risk-reward has turned favourable.

Upgrade to BUY with a lower SOP-based TP of MYR4.70 (-10%).

Potential re-rating catalysts include
1) affirmation of Wessex’s recovery over the mediumterm, and
2) positive progress on its AI compute business.

Source: Maybank

https://mkefactsettd.maybank-ke.com/PDFS/400618.pdf

[winston]

not vested

RHB Research cuts YTL Power earnings forecasts due to currency impact

By Isabelle Francis

The stronger ringgit is expected to affect revenue from PowerSeraya and Wessex Water, which are major contributors to YTL Power's income and primarily operate in the Singapore dollar and British pound.

Increased exposure to the US dollar is also likely, due to upcoming commercialisation of YTL Power's artificial intelligence data centre (AI-DC).

"PowerSeraya’s and Wessex Water’s revenue accounted for 68% and 23% of total revenue in FY2024.

Source: theedgemalaysia.com

https://theedgemalaysia.com/node/729022

[winston]

not vested

New Power Seraya plant to lift YTL Power

Retail electricity contracts with higher tariffs and favourable natural gas hedges gradually expire.

New capacity is expected to kick in from 2026.

The group’s upcoming 600 megawatts hydrogen-ready combined cycle gas turbine power plant is expected to expand Seraya’s capacity by an estimated 20% once operational by December 2027.

TA Research said that with an estimated capital expenditure of S$800mil, a 21-year plant life and high-single digit pooled internal rate of return, the new plant could add about 20 sen per share to its sum-of-parts valuation.

Source: The Star

https://www.thestar.com.my/business/bus ... -ytl-power